OVER THREE IN four Irish adults have a savings account, but less than half have any kind of investment.

A new report from the Banking and Payments Federation of Ireland (BPFI) has found that Irish adults do save some money for a rainy day or short term expenses, but only 44% have any kind of investment to grow their wealth.

Of the 77% of people that have a separate savings account, over a third have under €5,000 in their account.

This varies significantly by age with younger adults more likely to have less than €5,000 and older adults more likely to hold over €10,000 in savings.

Those aged 65 and older are the most likely to hold a separate savings and deposit account, at 84%. 

The BPFI also found that most people prioritise short to medium investments such as rainy days or holiday planning over saving for long term needs like retirement. 

A rainy day was the most common reason given by respondents, with 64% of savers and 39% of investors setting aside funds for unexpected bills, events or emergencies.

Other reasons given include 38% for short-term expenses such as holidays and 34% for major expenses such as a house deposit or a wedding.

Some consumers also said they are saving to support family, to provide an income during retirement and to have money set aside for long term care later in life. 

Of those that hold any kind of investment, 72% described themselves as conservative or very conservative, preferring low-risk options. 20% said they do not closely monitor these investments. 

Almost one fifth of those surveyed do not understand the fees and taxes they need to pay. 

Chief executive of BPFI Brian Hayes said these results “indicate that there is potential to increase the number of people investing”.